Here are 7 Important Tips you need to consider before you sign your Contract:
1. Research your developer.
It is wise to read about previous projects of the developer. It will give you a good idea of the developer’s reputation if you research whether some of the projects failed and the cause of failure. Ask some of your friends if they have had experiences with the developer.
2. Examine and read each clause of the contract.
The peculiarity of off the plan purchases is that you only have the contract to hold on to. There is no tangible proof of the terms other what are written in the contract itself. You need to carefully read and know what each clause means. Ask the developer if a clause is unclear. Be sure you are satisfied with the details and inform the developer if you do not agree with some terms. We recommend that you seek legal advice before you sign your Contract.
3. Do not trust stamp duty initial valuation.
Vendors usually give purchasers attractive benefits in stamp duty to lure them to purchase. Do not trust the material given to you by the real estate agent as to stamp duty. The only way to ascertain stamp duty is to check the stamp duty at: http://amun.osr.qld.gov.au
4. Do not pay too much.
The value of the property could rise or fall after the contract date. Do not settle on a higher price just because you have the time before paying. Remember that you cannot be sure what could be the value of the property on the settlement date. It is advisable to research on the current price of other similar properties located near the project site to give you an idea of the price trend.
5. Know your rights under the contract
You should know what possible remedies you could take in case the developer violates any terms under the contract. Will your money be returned in full in case you rescind? Are you allowed to back out in case of variations of the finished project? It is recommended that you consult with real estate law practitioners. Have them read the contract and explain to you what are possible actions you can take against the developer in case of breach. He or she can explain you in details what wrongs are actionable under Queensland’s real estate law.
6. Consider the details.
The contract should give you a mental image of the finished project. It should provide details as to floor plan, fixtures, furniture as well as amenities like parking space. Before signing the contract, make sure you are satisfied with each aspect of the project. It is unlikely that the developer will change the terms to favor you once the contract has been signed. Read and ask before signing.
Know what could be the possible variations. Upon construction, it is possible the developer cannot find the exact brand or style of fixture stated in the contract. Substitution will become necessary. After the contract date, the developer might also change some aspects to comply with state building regulations.
7. Decide on financing scheme
Financing is an important aspect in any real estate purchase. Developers usually require a certain amount of deposit upon signing of contract. Try to negotiate a minimum deposit as developers are usually keen on attracting more purchasers for their project. Decide on deposit options. Deposit can be in the form of bank guarantees or bonds. Have a talk with the developer if you prefer a certain type of deposit. Make sure you are able to pay when the settlement date arrives.